$625m recap inked for Green's $1b tower.SL Green Realty Corp. and SITQ, a subsidiary of the Caisse de depot et placement du Quebec, announced that they have completed a recapitalization of 1515 Broadway, the midtown property they bought in May 2002. The joint venture has obtained $625 million in financing in the form of a three-year loan bearing interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 90 basis points from Lehman Brothers and Wachovia Bank, the existing lenders. In connection with the recapitalization, the property was appraised for approximately $1 billion--more than double the $484 million purchase price paid for the property in 2002. Located in the heart of Times Square, 1515 Broadway is the home of broadcast media giant Viacom International and subsidiaries Paramount Pictures, Showtime Networks, Infinity Broadcasting and MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. . The world-famous MTV studios overlook New York's busiest intersection of retailing, tourism and other businesses. The 1.75-million-square-foot tower was acquired in 2002 for $276 per foot by the joint venture partners, who then repositioned and upgraded the ground floor retail, to include AEG AEG Aeger (Latin: Sick) AEG Allgemeine Elektrizitäts-Gesellschaft (Common Electricity Company) AEG Aircraft Evaluation Group AEG Association of Engineering Geologists AEG Air Expeditionary Group Live's Nokia Theatre, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and Billabong bil·la·bong n. Australian 1. A dead-end channel extending from the main stream of a river. 2. A streambed filled with water only in the rainy season. 3. A stagnant pool or backwater. . In addition, the venture leased or renewed over 207,000 s/f of office space, thereby bringing the building's occupancy to 100 percent and current net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to over $50 million per annum Per annum Yearly. . The recapitalization allows SL Green to exceed the performance thresholds established with SITQ, resulting in an increased economic stake in the property from 55% to approximately 68.5%. SL Green will use its portion of the refinancing proceeds to repay its unsecured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and for general corporate purposes. Marc Holliday, President & Chief Executive Officer of SL Green commented, "This financing--following the timely acquisition and a successful repositioning and leasing effort--illustrates SL Green's outstanding track record of identifying and executing on opportunities that will deliver maximum value to our investors. We intend to continue capitalizing on such opportunities in sectors and locations where we have superior market knowledge and where we have developed strong working relationships with partners who can help us attain the best results. Our business plan emphasizes "Growth by Design" and we have again demonstrated our ability to deliver on that." "Our partnership with SL Green has been very successful and we are very satisfied with this investment in New York, where SITQ wishes to extend its presence", explained Paul Campbell, President & Chief Executive Officer of SITQ. Sonnenblick Goldman Company acted as the exclusive financial advisor to the Company in arranging the financing. |
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